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Copper Dips on Fed Stimulus Uncertainty; China GDP Eyed

Industry News 10:34:51AM Jul 12, 2012 Source:SMM

SHANGHAI, July 12 (Reuters) - Copper edged down on Thursday, dropping for a fifth session out of seven, as uncertainty the U.S. Federal Reserve would launch more stimulus measures soured market sentiment, with prices in tight ranges on caution before China's GDP data.

Fundamentals 
Three-month copper on the London Metal Exchange inched down just 0.2 percent to $7,525 per tonne by 0153 GMT, after gaining 0.7 percent on Wednesday.

The most-active October copper contract on the Shanghai Futures Exchange fell 0.3 percent to 54,990 yuan ($8,600) per tonne.

China will release its GDP figures on Friday, which are expected to be the weakest since the three months to March 2009 during the global financial crisis but may raise chances of Beijing further easing its monetary policy.

Sluggish demand from top consumer China, as evidenced by a double-digit fall in Chinese copper imports last month, have kept copper under pressure, with prices down 14 percent from this year's peak of $8,765 reached in February.

The U.S. Federal Reserve is open to buying more Treasury bonds to stimulate the economy, but the recovery might need to weaken for a consensus to build, minutes from the central bank's June meeting released on Wednesday showed.

Finance Minister Wolfgang Schaueble said on Wednesday he hoped Germany's Constitutional Court would pass judgment on the EU's bailout fund and fiscal pact before autumn, suggesting he expects the decision to take months rather than weeks.

Recession-plagued Spain unveiled new austerity measures on Wednesday designed to slash 65 billion euros from the public deficit by 2014 as Prime Minister Mariano Rajoy yielded to EU pressure to try to avoid a full state bailout.

Brazil cut its benchmark interest rate to a record-low 8 percent on Wednesday as policymakers scramble to revive an economy that has failed for nearly a year to respond to a barrage of stimulus measures. 
      
Market News
Asian shares barely budged on Thursday as the U.S. Federal Reserve appeared to put off taking more aggressive stimulus steps until economic conditions worsen, offering investors few reasons to take risks with second-quarter earnings painting a globally gloomy picture.

The dollar stood close to a one-year high against a basket of major currencies on Thursday in Asia, having pushed the euro to a two-year low after minutes from a Federal Reserve meeting showed more monetary easing was not on the cards for now.
       
DATA/EVENTS (GMT)
0530  India  Industrial Output yy       Jul     
0900  EZ     Industrial production yy   May     
1230  U.S.   Jobless claims             Weekly  
1230  U.S.   Export prices              Jun    
1230  U.S.   Import prices              Jun    
1800  U.S.   Federal budget             Jun
                                                     
  Base metals prices at 0153 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7525.00    -14.00     -0.19     -0.99
  SHFE CU FUT OCT2    54990      -160     -0.29     -1.15
  LME Alum          1899.00     -2.00     -0.11     -5.99
  SHFE AL FUT OCT2    15470       -35     -0.23     -2.34
  HG COPPER SEP2     341.40     -3.35     -0.97     -0.64
  LME Zinc          1838.00    -14.00     -0.76     -0.38
  SHFE ZN FUT OCT2    14590       -65     -0.44     -1.39
  LME Nickel       16120.00     20.00     +0.12    -13.84
  LME Lead          1863.00     -5.00     -0.27     -8.45
  SHFE PB FUT         14815       -55     -0.37     -3.11
  LME Tin          18751.00    -99.00     -0.53     -2.34
  LME/Shanghai arb    1103
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3686 Chinese yuan)

 
   

 

Copper Dips on Fed Stimulus Uncertainty; China GDP Eyed

Industry News 10:34:51AM Jul 12, 2012 Source:SMM

SHANGHAI, July 12 (Reuters) - Copper edged down on Thursday, dropping for a fifth session out of seven, as uncertainty the U.S. Federal Reserve would launch more stimulus measures soured market sentiment, with prices in tight ranges on caution before China's GDP data.

Fundamentals 
Three-month copper on the London Metal Exchange inched down just 0.2 percent to $7,525 per tonne by 0153 GMT, after gaining 0.7 percent on Wednesday.

The most-active October copper contract on the Shanghai Futures Exchange fell 0.3 percent to 54,990 yuan ($8,600) per tonne.

China will release its GDP figures on Friday, which are expected to be the weakest since the three months to March 2009 during the global financial crisis but may raise chances of Beijing further easing its monetary policy.

Sluggish demand from top consumer China, as evidenced by a double-digit fall in Chinese copper imports last month, have kept copper under pressure, with prices down 14 percent from this year's peak of $8,765 reached in February.

The U.S. Federal Reserve is open to buying more Treasury bonds to stimulate the economy, but the recovery might need to weaken for a consensus to build, minutes from the central bank's June meeting released on Wednesday showed.

Finance Minister Wolfgang Schaueble said on Wednesday he hoped Germany's Constitutional Court would pass judgment on the EU's bailout fund and fiscal pact before autumn, suggesting he expects the decision to take months rather than weeks.

Recession-plagued Spain unveiled new austerity measures on Wednesday designed to slash 65 billion euros from the public deficit by 2014 as Prime Minister Mariano Rajoy yielded to EU pressure to try to avoid a full state bailout.

Brazil cut its benchmark interest rate to a record-low 8 percent on Wednesday as policymakers scramble to revive an economy that has failed for nearly a year to respond to a barrage of stimulus measures. 
      
Market News
Asian shares barely budged on Thursday as the U.S. Federal Reserve appeared to put off taking more aggressive stimulus steps until economic conditions worsen, offering investors few reasons to take risks with second-quarter earnings painting a globally gloomy picture.

The dollar stood close to a one-year high against a basket of major currencies on Thursday in Asia, having pushed the euro to a two-year low after minutes from a Federal Reserve meeting showed more monetary easing was not on the cards for now.
       
DATA/EVENTS (GMT)
0530  India  Industrial Output yy       Jul     
0900  EZ     Industrial production yy   May     
1230  U.S.   Jobless claims             Weekly  
1230  U.S.   Export prices              Jun    
1230  U.S.   Import prices              Jun    
1800  U.S.   Federal budget             Jun
                                                     
  Base metals prices at 0153 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7525.00    -14.00     -0.19     -0.99
  SHFE CU FUT OCT2    54990      -160     -0.29     -1.15
  LME Alum          1899.00     -2.00     -0.11     -5.99
  SHFE AL FUT OCT2    15470       -35     -0.23     -2.34
  HG COPPER SEP2     341.40     -3.35     -0.97     -0.64
  LME Zinc          1838.00    -14.00     -0.76     -0.38
  SHFE ZN FUT OCT2    14590       -65     -0.44     -1.39
  LME Nickel       16120.00     20.00     +0.12    -13.84
  LME Lead          1863.00     -5.00     -0.27     -8.45
  SHFE PB FUT         14815       -55     -0.37     -3.11
  LME Tin          18751.00    -99.00     -0.53     -2.34
  LME/Shanghai arb    1103
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3686 Chinese yuan)